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"I find quite strong parallels between what John Law attempted exactly 300 years ago in Paris by severing the connection between money and gold by printing a lot of money through the central bank and using that money to purchase shares in the Mississippi Company. " #QE https://twitter.com/jessefelder/status/1304465510290124801
"The valuation of the shares of the Mississippi Company rose in proportion to the decline in interest rates. Already back then, there was a clear inverse relationship between the interest rate level and the price of long dated assets like shares."
"Interest rates of 0% in the English speaking world and below 0% in Europe and Japan, that’s simply unprecedented. The payment of interest on debt precedes money in terms of coinage which was introduced 700 BC. "
"Interest was paid on debts with barley and silver in the third millennial BC. So you’ve got more than 5000 years of history in which interest rates never turned negative."
"It’s not capitalism as we knew it. One of the consequences of very low interest rates is the misallocation of capital which means lower productivity growth. "
"So the poor – or one can just say the younger generation – face lower real income growth, and all the things you need in the ascent of your life such as accumulating housing and pensions are much more expensive now."
"When I left university, you could buy a flat in London for 3 or 4 times your starting annual salary. Now it’s 25 times...As a result, younger generations are much more radicalised now. In England, anti-capitalism is on the rise."
"My great hope is that inflation will bring the wealth bubble to an end.
I was brought up in the Seventies and I have studied a fair amount on the history of inflation – so I don’t have any illusions about inflation, I don’t think it’s a good thing."
I was brought up in the Seventies and I have studied a fair amount on the history of inflation – so I don’t have any illusions about inflation, I don’t think it’s a good thing."
"If we weren’t in that situation, I wouldn’t be welcoming inflation. But when you get inflation, you would be getting rid of a lot of this paper wealth and interest rates would rise. And as interest rates rise, the speculative bubble aspect of wealth would diminish." #QE #Gold
"Governments have now realised that money doesn’t cost anything – so they will spend it. As you do that, you’re either creating a liability that someone has to pay off with taxes at some future date, or you have a piece of bubble paper that is going to be inflated away. "
"I suspect inflation is what is going to happen, and it could happen quite soon."
Its already here - government inflation stats are just lying.
Its already here - government inflation stats are just lying.
